encinitas city misc pension

8/3/2019 Encinitas City Misc Pension

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ACaIPERSOctober 2011

California Public Employees' RetirementSystemActuarial OfficeP.O. Box 942701Sacramento, CA 94229-2701TIY: (916) 795-3240(888) 225-7377 phone. (916) 795-2744 faxwww.calpers.ca.gov

MISCELLANEOUS PLAN OF THE CITY OF ENCINITAS (EMPLOYER # 1437)Annual Valuation Report as of June 30, 2010Dear Employer,As an attachment to this letter, you will find a copy of the June 30, 2010 actuarial valuation report of your pensionplan. This report contains important actuarial information about your pension plan at CaIPERS. Your CaIPERS staffactuary is available to discuss the report with you.Changes Since the Prior Year's ValuationA temporary modification to our method of determining the actuarial value of assets and amortizing gains and losseswas implemented for the valuations as of June 30, 2009 through June 30, 2011. The effect of those modificationscontinue in this valuation.There may also be changes specific to your plan such as contract amendments and funding changes.Further descriptions of general changes are included in the "Highlights and Executive Summary" section and inAppendix A, "Statement of Actuarial Data, Methods and Assumptions." The effect of the changes on your rate isincluded in the "Reconciliation of Required Employer Contributions." .Future Contribution RatesThe exhibit below displays the required employer contribution rate and Superfunded status for 2012/2013 along withestimates of the contribution rate for 2013/2014 and 2014/2015 and the probable Superfunded status for 2013/2014.The estimated rate for 2013/2014 is based solely on a projection of the investment return for fiscal 2010/2011, namely20.0%. The estimated rate for 2014/2015 uses the valuation assumption of 7.75% as the investment return for fiscal2011/2012. See Appendix D, "Investment Return Sensitivity Analysis", for rate projections under a variety ofinvestment return scenarios. Please disregard any projections that we may have provided to you in the past.

Fiscal Year2012/20132013/20142014/2015

Employer Contribution Rate18.265%18.4% (projected)18.5% (projected)

Superfunded?NONON/A

Member contributions (whether paid by the employer or the employee) are in addition to the above rates.The estimates for 2013/2014 and 2014/2015 also assume that there are no f!1ture amendments and no liability gainsor losses (such as larger than expected pay increases, more retirements than expected, etc.). This is a veryimportant assumption because these gains and losses do occur and can have a significant impact onyour contribution rate. Even for the largest plans, such gains and losses often cause a change in the employer'scontribution rate of one or two percent and may be even larger in some less common instances. These gains andlosses cannot be predicted in advance so the projected employer contribution rates are just estimates. Your actualrate for 2013/2014 will be provided in next year's report.


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MISCELLANEOUS PLAN OF THE OTY OF ENGNITAS (EMPLOYER # 1437)October 2011Page 2

We are very busy preparing actuarial valuations for other public agencies and expect to complete all such valuations bythe end of October. We understand that you might have a number of questions about these results. While we are veryinterested in discussing these results with your agency, in the interest of allowing us to give every public agency theirresult, we ask that, if at all possible, you wait until after October 31 to contact us with questions. I f you havequestions, please call (888) CaIPERS (225-7377).Sincerely,I L ~ ALAN MILLIGAN, MAAA, FCA, FSA, FaAChief Actuary

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ACalPERS

ACTUARIAL VALUATIONas of June 30, 2010for theMISCELLANEOUS PLANof theCITY OF ENCINITAS

(EMPLOYER # 1437)REQUIRED CONTRIBUTIONS

FOR FISCAL YEARJuly 1, 2012 - June 30, 2013


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TABLE OF CONTENTS

ACTUARIAL CERTIFICATION

HIGHUGHTS AND EXECUTIVE SUMMARYPurpose of the ReportRequired ContributionsFunded StatusCost and VolatilityChanges Since the Prior Valuation

SUMMARY OF LIABIUTIES AND RATES.Development of Accrued and Unfunded Liabilities(Gain) / Loss AnalysisSchedule of Amortization BasesReconciliation of Required Employer ContributionsEmployer Contribution Rate HistoryFunding History

SUMMARY OF ASSETSReconciliation of the Market Value of AssetsDevelopment of the Actuarial Value of AssetsAsset AllocationCaIPERS History of Investment Returns

SUMMARY OF PARTICIPANT DATASummary of Valuation D"taActive MembersTransferred and Terminated MembersRetired Members and Beneficiaries

APPENDIX AStatement of Actuarial Data, Methods and Assumptions

APPENDIX BSummary of Major Benefit OptionsDescription of Principal Plan ProvisionsAPPENDIXC

GASB Statement No. 27APPENDIX DInvestment Return Sensitivity AnalysisAPPENDIX EGlossary of Actuarial Terms

FIN PROCESS CONTROL ID (CY) 361066 FIN PROCESS CONTROL ID (PY) 347235

1

55567

111213141515

19192021

2526.2 728

REPORT 10 65905


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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437

ACTUARIAL CERTIFICATIONTo the best of our knowledge, this report is complete and accurate and contains sufficient information todisclose, fully and fairly, the funded condition of the MISCELLANEOUS PLAN OF THE OTY OF ENONITAS.This valuation is based on the member and financial data as of June 30, 2010 provided by the variousCaIPERS databases and the benefits under this plan with CaIPERS as of the date this report was produced.It is our opinion that the valuation has been performed in accordance with generally accepted actuarialprinciples, in accordance with standards of practice prescribed by the Actuarial Standards Board, and thatthe assumptions and methods are internally consistent and reasonable for this plan, as prescribed by theCaIPERS Board of Administration according to provisions set forth in the California Public Employees'Retirement Law.The undersigned listed are actuaries for CaIPERS. Both are members of the American Academy of Actuariesand the Society of Actuaries and meet the Qualification Standards of the American Academy of Actuaries torender the actuarial opinion contained herein.

NANCY E. CAMPBELL, ASA, MAAAEnrolled ActuarySupervising Pension Actuary, CaIPERSPlan Actuaryj / L ~ ALAN MILUGAN, MAAA, FCA, FSA, FOAChief Actuary

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HIGHLIGHTS AND EXECUTIVE SUMMARY

PURPOSE OF TH E REPORT

REQUIRED CONTRIBUTIONS

FUNDED STATUS

COST AND VOLATILITY

CHANGES SINCE THE PRIOR VALUATION


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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE GTY OF ENONITASEMPLOYER NUMBER 1437

Purpose of the ReportThis report presents the results of the June 30, 2010 actuarial valuation of the MISCELLANEOUS PLAN OFTHE OTY OF ENONITAS of the California Public Employees' Retirement System (CaIPERS). The valuationwas prepared by the Plan Actuary in order to: set forth the actuarial assets and accrued liabilities of this plan as of June 30, 2010; certify that the actuarially required employer contribution rate of this plan for the fiscal year July 1,2012 through June 30, 2013 is 18.265%; provide actuarial information as of June 30, 2010 to the CaIPERS Board of Administration and otherinterested parties; and provide pension information as of June 30, 2010 to be used in financial reports subject to GovernmentalAccounting Standards Board (GASB) Statement Number 27 for a Single Employer Defined BenefitPension Plan.The use of this report for any other purposes may be inappropriate. In particular, this report does notcontain information applicable to termination or alternative benefit costs. The employer should contact thei ractuary before disseminating any portion of this report for any reason that is not explicitly described above.

Required ContributionsRequired Employer ContributionsEmployer Contribution Required (in Projected Dollars)

Payment for Normal CostPayment on the Amortization BasesTotal (not less than zero)Annual Lump Sum Prepayment Option*

Employer Contribution Required (Percentage of Payroll)Payment for Normal CostPayment on the Amortization BasesTotal (not less than zero)

Funded StatusPresent Value of Projected BenefitsEntry Age Normal Accrued LiabilityActuarial Value of Assets (AVA)Unfunded Liability (AVA)Market Value of Assets (MVA)Unfunded Liability (MVA)Funded Status (MVA)Superfunded Status

$$$

$$$$

Fiscal Year2011/2012

1,440,6811,158,3762,599,0572,503,843

9.865%7.932%

17.797% '

June 30, 200972,937,76555,662,30440,484,77515,177,52929,765,77225,896,532

53.5%No

$$$

$$$$

Fiscal Year2012/2013

1,450,9151,241,9972,692,9122,594,260

9.841%8.424%

18.265%

June 30, 201078,804,36161,709,28545,537,53016,171,75536,513,17925,196,106

59.2%No* Payment must be received by CaIPERS before the first payroll of the new fiscal year and af ter June 30.

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE an OF ENONITASEMPLOYER NUMBER 1437

Cost and VolatilityActuarial Cost Estimates in GeneralWhat will this pension plan cost? Unfortunately, there is no simple answer. There are two major reasons forthe complexity of the answer. First, all actuarial calculations, including the ones in this report, are based ona number of assumptions about the future. These assumptions can be divided into two categories. Demographic assumptions include the percentage of employees that will terminate, die, becomedisabled, and retire in each future year. Economic assumptions include future salary ino-eases for each active employee, and theassumption with the greatest impact, future asset retums at CaIPERS for each year into the futureuntil the last dollar is paid to current members of your plan.While CaIPERS has set these assumptions to reflect our best estimate of the real future of your plan, it mustbe understood that these assumptions are very long term predictors and will surely not be realized in anyone year. For example, while the asset eamings at CaIPERS have averaged more than the assumed retumof 7.75% for the past twenty year period ending June 30, 2011, retums for each fiscal year ranged from-24% to +20.7%Second, the very nature of actuarial funding produces the answer to the question of plan cost as the sum oftwo separate pieces. The Normal Cost (Le., the future annual premiums in the absence of surplus or unfunded liability)expressed as a percentage of total active payroll. The Past Service Cost or Accrued Liability (Le., the current value of the benefit for all credited pastservice of current members) which is expressed as a lump sum dollar amount.The cost is the sum of a percent of future pay and a lump sum dollar amount (the sum of an apple and anorange if you will). To communicate the total cost, either the Normal Cost (Le., future percent of payroll)must be converted to a lump sum dollar amount (in which case the total cost is the present value ofbenefits), or the Past Service Cost (Le., the lump sum) must be converted to a percent of payroll (in wh,chcase the total cost is expressed as the employer's rate, part of which is permanent and part temporary).Converting the Past Service Cost lump sum to a percent of payroll requires a specific amortization period,and the employer rate will vary depending on the amortization period chosen.Rate VolatilityAs is stated above, the actuarial calculations supplied in this communication are based on a number ofassumptions about very long term demographic and economic behavior. Unless these assumptions(terminations, deaths, disabilities, retirements, salary growth, and investment retum) are exactly realizedeach year, there will be differences on a year to year basis. The year-to-year differences between actualexperience and the assumptions are called actuarial gains and losses and serve to lower or raise theemployer's rates from one year to the next. Therefore, the rates will inevitably fluctuate, especially due tothe ups and downs 9f investment retums.Plans that have higher asset to payroll ratios produce more volatile employer rates due to investmentreturn. On the following page we have shown your volatility index, a measure of the plan's potential futurerate volatility. It should be noted that this ratio increases over time but generally tends to stabilize as theplan matures.

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437Rate Volatility

Market Value of Assets without ReceivablesPayrollVolatility Index

$

As of June 30, 2010

36,210,84013,394,6872.7

Changes since the Prior ValuationActuarial Assumptions .There were no changes made to the actuarial assumptions since the prior year's actuarial valuation. Theonly exception would be changes necessary to reflect a benefit amendment.Actuarial MethodsA method change was adopted by the CaIPERS Board in June 2009. We are in the second year of a 3-yeartemporary change to the asset smoothing method and the amortization of gains and losses in order tophase in the impact of the -24% investment loss experienced by CaIPERS in fiscal year 2008-2009. Thefollowing changes were adopted:

Increase the corridor limits for the actuarial value of assets from 80%-120% of market valueto 60%-140% of market value on June 30, 2009 Reduce the corridor limits for the actuarial value of assets to 70%-130% of market value onJune 30, 2010 Return to the 80%":120% of market value corridor limits for the actuarial value of assets onJune 30, 2011 and thereafter Isolate and amortize all gains and losses during fiscal year 2008-2009, 2009-2010 and 2010-2011 over fixed and declining 30 year periods (as opposed to the current rolling 30 yearamortization)

A complete description of all methods is in Appendix A. The detailed calculation of the actuarial value ofassets is shown in the "Development of the Actuarial Value of Assets."BenefitsThe standard actuarial practice at CaIPERS is to recognize mandated legislative benefit changes in the firstannual valuation whose valuation date follows the effective date of the legislation. Voluntary benefitchanges by plan amendment are generally included in the first valuation that is prepared after theamendment becomes effective even if the valuation date is prior to the effective date of the amendment.This valuation generally reflects plan changes by amendments effective before the date of the report.Please refer to Appendix B for a summary of the plan provisions used in the valuation. The effect of anymandated benefit changes or plan amendments on the unfunded liability is shown in the "(Gain)/LossAnalysis" and the effect on your employer contribution rate is shown in the "Reconciliation of RequiredEmployer Contributions". I t should be noted that no change in liability or rate is shown for any planchanges which were already included in the prior year's valuation.

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SUMMARY OF LIABILITIES AND RATES

DEVELOPMENT OF ACCRUED AND UNFUNDED LIABILITIES

(GAIN) I LOSS ANALYSIS

SCHEDULE OF AMORTIZATION BASES

RECONCILIATION OF REQUIRED EMPLOYER CONTRIBUTIONS

EMPLOYER CONTRIBUTION RATE HISTORY

FUNDING HISTORY


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Development of Accrued and Unfunded Liabilities1. Present Value of Projected Benefits

a) Active Members $ 56,319,383b) Transferred Members 5,761,562c) Terminated Members 2,221,160d) Members and Beneficiaries Receiving Payments 14,502,256e) Total $ 78,804,361

2. Present Value of Future Employer Normal Costs $ 9,005,6583. Present Value of Future Employee Contributions $ 8,089,4184. Entry Age Normal Accrued Liabilitya) Active Members [(la) - (2) - (3)] $ 39,224,307b) Transferred Members (1b) 5,761,562c) Terminated Members (1c) 2,221,160d) Members and Beneficiaries Receiving Payments (ld) 14502256e) Total $ 61,709,2855. Actuarial Value of Assets $ 45,537,5306. Unfunded Accrued Liability [(4e) - (5)] $ 16,171,755

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE CTIY OF ENONITASEMPLOYER NUMBER 1437

(Gain)/Loss Analysis 6/30/09 - 6/30/10To calculate the cost requirements of the plan, assumptions are made about future events that affect theamount and timing of benefits to be paid and assets to be accumulated. Each year actual experience iscompared to the expected experience based on the actuarial assumptions. This results in actuarial gains orlosses, as shown below.A Total (Gain)/loss for the Year*1. Unfunded Accrued Liability (UAL) as of 6/30/09 $ 15,177,5292. Expected Payment on the UAL during 2009/2010 877,1503. Interest through 6/30/10 [.0775 x (A1) - 1.0775)Y2 - 1) x (A2) ] 1,142,9034. Expected UAL before all other changes [(A1) - (A2) + (A3)] 15,443,2825. Change due to plan changes 06. Change due to assumption change 07. Expected UAL after all other changes [(A4) + (A5) + (A6)] 15,443,2828. Actual UAL as of 6/30/10 16,171,755

9. Total (Gain)/Loss for 2009/2010 [(A8) - (A7)] $ 728,473B Contribution (Gain)/loss for the Year

1. Expected Contribution (Employer and Employee) $ 3,324,4852. Inte res t on Expected Contributions 126,4203. Actual Contributions 3,560,2024. Interest on Actual Contributions 135,3845. Expected Contributions with Interest [(B1) + (B2)] 3,450,9056. Actual Contributions with Interest [(B3) + (84)] 3,695,5867. Contribution (Gain)/Loss [(B5) - (B6)] $ (244,681)

C Asset (Gain)/loss for the Year1. Actuarial Value of Assets as of 6/30 /09 Including Receivables $ 40,484,7752. Receivables as of 6/30/09 208,2233. Actuarial Value of Assets as of 6/30/09 40,276,5524. Contributions Received 3,560,2025. Benefits and Refunds Paid (1,084,101)6. Transfers/Misc. Adjustments (85,216)7. Expected Int. [.0775 x (0 ) + 1.0775)Y2 - 1) x C4) + (C5) + (C6] 3,212,3518. Expected Assets as of 6/30/10 [ (0) + (C4) + (C5) + (C6) + (Cl)] 45,879,7889. Receivables as of 6/30/10 302,33910. Expected Assets Including Receivables 46,182,12711. Actual Actuarial Value of Assets as of 6/30/10 45,537,530

12. Asset (Gain)/Loss [(ClO) - (Cl l ) ] $ 644,597D liability (Gain)/loss for the Year1. Total (Gain)/Loss (A9) $ 728,4732. Contribution (Gain)/Loss (B7) (244,681)

3. Asset (Gain)/Loss (C12) 644,5974. Liability (Gain)/Loss [(01) - (02) - (03)] $ 328,557

Development of the (Gain)/loss Balance as of 6/30/10**1. (Gain)/Loss Balance as of 6/30/09 $ 7,244,9472. Payment Made on the Balance during 2009/2010 424,8373. Interest through 6/30/10 [.0775 x (1) - (1.0775)1/2 - 1) x (2)] 545,3284. Scheduled (Gain)/Loss Balance as of 6/30/10 [(1) - (2) + (3)] $ 7,365,438* The Total (Gain)/Loss for 2009/2010 is being amortized over a fixed and declining 30-year period and isshown as "Special (Gain)/Loss" in the "Schedule of Amortization B a s e s ' ~ on the following page.

** This (Gain)/Loss represents the 6/30/10 balance of the accumulation of (gains)/Iosses through 6/30/08and is amortized using a rolling 30-year period. Gains and losses incurred after 6/30/2011 will againaccumulate to this base.

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE cm OF ENCINITASEMPLOYER NUMBER 1437

Schedule of Amortization BasesThere is a two year lag between the Valuation Date and the Contribution Fiscal Year. The assets, liabilities and funded status of the plan are measured as of the valuation date (June 30, 2010). The employer contribution rate determined by the valuation is for the fiscal year beginning two years after the valuation date (fiscal year 2012/2013).This two year lag is necessary due to the amount of time needed to extract and test the membership and finanCial data, and due to the need to provide public agencieswith their employer contribution rates well In advance of the start of the fiscal year.The Unfunded Liability is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of thefiscal year for which the contribution is being determined. The Unfunded Liability is rolled forward each year by subtracting the expected Payment on the UnfundedLiability for the fiscal year and adjusting for interest. The Expected Payment on the Unfunded Liability for a fiscal year is equal to the Expected Employer Contribution forthe fiscal year minus the Expected Normal Cost for the year. The Employer Contribution Rate for the first fiscal year is determined by the actuarial valuation two yearsago and the rate for the second year is from the actuarial valuation one year ago. The Normal Cost Rate for each of the two fiscal years is assumed to be the same asthe rate determined by the current valuation. All expected dollar amounts are determined by multiplying the rate by the expected payroll for the applicable fiscal year,based on payroll as of the valuation date.

. A ~ . ~ y . . ~ . ~ ~ . f ~ r . f . : . ! . ~ . ! : ~ I .. ~ . Q . ~ . ~ I . ~ . Q . ~ . ~ " " . " . " " " . " " " " ..""".PaymentasAmorti- Expected Expected Scheduled Percent-Date zation Balance Payment Balance Payment Balance Payment for age of_ _ _ _ B ~ ~ . ~ ~ ! ) _ ~ ! _ ~ ~ ! ~ .. . """."".", . _ " . ~ ! ~ ! l _ I ? . ! i . . ~ . ! ) . ~ ~ ............. f ~ ~ . i Q ~ ........................." . . l . ~ . Q / . ! Q ........................ ~ Q ! . Q L ~ 9 . ! . ~ ............ ............. ~ I . ~ . Q l . . ! . ! ................... ?Q.!.!/.:?Q.!.:?. . ~ I ~ . Q l . . ! . : ? . "'''''''' . " " " " " ~ . Q . ! . ~ : : ~ . 9 . . ! . ~ " . .......".. !:'.!J..y.rQ.I.! ...""",, .

A S S L J ! 1 . P 1 1 Q t i . f ! : ! t ! . ~ Q ~ ..."'_ ...."........... _ . Q f ~ 9 , 1 9 L ....................... ! . ~ .......................... H I . ? ? ~ I . ~ Q . ? .................... $ ! E l l ~ ~ . . .... $.!l??2l???........ ....H?J.I!U....... ......... $.!l??.?1.29,Q....... ............H.??&E ................ Q . : . ? . ~ ~ . ~ ! ~ _ ~ S E T ? C H A N G ~ ...__ .. '"' .._...........___9 , l l 9 , I Q ~ ....._........... .._ r ~ _ . . . . . . . . . . . . . . . .............. $ . U . ~ l . i ~ ? 2 ........._................. J ( . ! l . ? ~ D ......................."'"' $..mJ ? 1 ~ . L .............................$nl..??.?} ................................... . l ( g ~ . ? Q ) ................................. J ( ! . I . ~ . ! . ~ } ................ ( Q . : . Q 9 , ~ . O ! ~ ) ......BENEFIT CHANGE _"__ ..._ ....__ ....._."'.__ . Q f ~ 9 , 1 . 9 . 1 ...._ ..._._............ . ! ~ . _ ...... ........ "' ..... _ . J ~ I . ! ? ~ I . . ? ? ? .................... J ? . ~ ! l . ? ? . ~ . " . . ....... g J l ~ l Q . ~ Q . . . . . . . . . . .... , , $ ~ Q 9 , I . . ? 1 . . . . . . . . . . . . . . . . . . . . . ....$ ~ I Q ~ M . ? . ~ . . . . . . . . . . . ..........$ . . ~ J Q l ! . ~ ....................? : . J . Q . ~ ! ~ ME"!:!i9D CHAl!g ............._.......... '.__ ............. . Q . 6 . f ~ 9 , 1 . 9 _ < ! ................ ............. ..!1 "......._..................$ . ( ! Q ! I . ~ . ? . Q 2 ........................$ . ( ? & ? ~ ) ..................."..... $ ( ~ ~ I . ~ . ? ) . . . . . . . . ......... l(gl..!..?2.. ...................... $(g?1..!.?.L .......................... $ . ( ~ / . . 1 . 9 . ) ............. ( Q ! Q . 1 ~ ~

.9.2?____ ............................ __ ............ "'_QnQfQ? "....................... ~ Q . . . . . . . . . . . . . . . . . . .... . E , ~ ~ . 1 1 . ~ ? . . . . . . . . . H 1 ~ / . ~ Q ? . . . . . . .....g.1?.ZI}}_?_ _ . . . . . . . . . . . . . . . . . $ 1 1 g / . Q . Q ~ . . . . . . . . . . . . . .... g ? ~ g l ? ~ } ..........."........" H ? ? . I ? ! ~ ...................~ . : . Q . n ~ ! 9 . A S S _ l ! t 1 P 1 1 Q t L f . . t i ~ r : ! . < ; > . . ~ .........._......_.__ "...... . Q L ~ Q / Q . L .............._............. J . ~ ................................. _ g ~ ! } r . . ? ! . ~ ..._...................".$.c!1Z!9.1 ..........$.?1.??S&9.? ................_..$?79&1Q ............................ . . . $ . ? 1 . ? ? b . ? ~ ? ........._............... ? . z . ~ & 1 . ? . ............... J . ! . ? . ~ . z . r . ~

....._................._..... " .... Q . 9 f ~ 9 1 . 9 . ~ . . . . . . . . . . . . . . . . " ' ...__. _? ~ . . . . . . . _."_ ...... . . $ . ~ ? ! / . ? 9 ? . . . . . . . . ...................$Q.. .......... $ . ~ . ~ f . . I . ~ ? _ 2 . . . . ..............." . $ . ~ . ~ I . . ~ ? ~ " . . . . . ........... $.!I.Q9?12.?9 .......................... $.!.I..?9.1 ............. . Q . : . 1 . ! . ~ ~ ( ~ . .._ ..................................... Q_6.a9.I.!.Q.....""._ .................... : . ~ . Q . . . . . . . . . . . .........._.E?M?1............................."" ... J Q . . . . . . . . . . . . $ . ? ? 1 1 ~ ~ . ! . . . . . . . . . . . . . ........................JQ"......... ..... $ . ~ ~ ? I . ? ~ . . . . . . ............... J ? 9 / . . ? ~ . ~ ............ . Q . : . ~ ~ 1 . ~ ! ~ ......PAy t 1 ~ l ! . I J . ~ ! . ~ ) L ~ Q ? ? . ......"................................. . Q f ~ 9 0 : 9 . . . . . . . . . . . .".......}Q""... ............ " ' . $ ( 1 ~ . , . ? ? ? 2 ...............!(!9/.9 ~ ~ ) ......... $ . { ? ? 1 1 . ~ g . n ..................... H ? 1 . 1 . . ? . ? . . ~ 2 ........ " . . . . . . . . . . $ ( ? . Q ~ I ~ . U .................... J ( ~ 9 1 . ? . 1 . ? . 2 . . . ..".... , . ( Q . : . ? . . Q . z . ~ ! ~ 2 . . .. . . I 0 1 : : ~ __ ......._.__ .._.__ .._........................... ................ ...................... _......................................................l ! ~ I . ! Z . ! l ? ~ ~ ......................~ ~ . ! ~ . l ? z . ! ..........~ ; ~ l ~ . ! . ~ l Q ~ . ~ . . . . . . . . . ~ " ! . l ! . ~ ~ l Q ! . ~ ...............1 ! . l . ~ . ~ ~ I . ~ ~ ? . . . . . . .... ! , . ~ 1 ! r . ~ . ~ ? . . . . . . . . . . ~ ~ . 4 ~ 4 . . ~ ! . C ! . .The special (gain)/Ioss bases were established using the temporary modification recognized in the 2009, 2010 and 2011 annual valuations. Unlike the gain/lossoccurring in previous and subsequent years, the gain/loss recognized in the 2009, 2010, and 2011 annual valuations will be amortized over fixed and declining 30 yearperiods so that these annual gain/losses will be fully paid off in 30 years.

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Reconciliation of Required Employer ContributionsPercentage Estimated $

of Based onProjected ProjectedPayroll Payroll1. Contribution for 7/1/11 - 6 /30/12 (from prior year annual report) 17.797% $ 2,599,057

2. Effect of changes since the pr ior year annual valuationa) Effect of unexpected changes in demographics and financial results 0.468% 69,008b) Effect of plan changes 0.000% 0c) Effect of changes in Assumptions 0.000% 0d) Effect of change in payroll 24,847e) Effect of elimination of amortization base 0.000% 0f) Effect of changes due to Fresh Start 0.000% 0g) Net effect of the changes above [Sum of (a) through (f)] 0.468% 93,855

3. Contribution for 7/1/12 - 6 /30/13 [(1)+(2g)] 18.265% 2,692,912

The contribution actually paid (item 1) may be different if a prepayment of unfunded actuarial liability ismade or a plan change became effective af ter the prior year's actuarial valuation was performed.

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE CITY OF ENONITASEMPLOYER NUMBER 1437

Employer Contribution Rate HistoryThe table below provides a recent history of the employer contribution rates fo r your plan, as determined bythe annual actuarial valuation. I t does not account for prepayments or benefit changes made in the middleof the year. .

Required By ValuationFiscal Employer Total EmployerYear Normal Cost Unfunded Rate Contribution Rate

2008 - 2009 9.927% 6.169% 16.096%2009 - 2010 10.043% 6.225% 16.268%2010 - 2011 9.864% 5.877% 15.741%2011 - 2012 9.865% 7.932% 17.797%2012 - 2013 9.841% 8.424% 18.265%

Funding HistoryThe Funding History below shows the recent history of the actuarial accrued liability, the market value ofassets, the actuarial value of assets, funded ratios and the annual covered payroll. The Actuarial Value ofAssets is used to establish funding requirements and the funded ratio on this basis represents the progresstoward fully funding future benefits for current plan participants. The funded ratio based on the MarketValue of Assets is an indicator of the short-term solvency of the plan.

Valuation Accrued Actuarial MarketValue Funded AnnualDate Liability Value of of Ratio CoveredAssets (AVA) Assets (MVA) AVAMVA Payroll

06/30/06 $ 37,344,459 $ 26,497,745 $ 27,922,557 71.0% 74.8% $ 11,357,01606/30/07 41,901,894 30,914,615 35,425,641 73.8% 84.5% 11,553,93606/30/08 47,091,832 35,862,082 36,042,752 76.2% 76.5% 12,567,36706/30/09 55,662,304 40,484,775 29,765,772 72.7% 53.5% 13,267,84406/30/10 61,709,285 45,537,530 36,513,179 73.8% 59.2% 13,394,687

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SUMMARY OF ASSETS

RECONCILIATION OF THE MARKET VALUE OF ASSETS

DEVELOPMENT OF TH E ACTUARIAL VALUE OF ASSETS

ASSET ALLOCATION

CALPERS HISTORY OF INVESTMENT RETURNS


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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE a n ' OF ENGNITASEMPLOYER NUMBER 1437

Reconciliation of the Market Value of Assets1. Market Value of Assets as of 6/30/09 Includ ing Receivables $ 29,765,7722. Receivables fo r Service Buybacks as of 6/30/09 208,2233. Market Value of Assets as of 6/30/09 29,557,5494. Employer Contributions 2,170,9395. Employee Contributions 1,389,2636. Benefit Payments to Retirees and Beneficiaries (1,045,763)7. Refunds (29,519)8. Lump Sum Payments (8,819)9. Transfers and Miscellaneous Adjustments (85,216)

10. Investment Return 4,262,40611. Market Value of Assets as of 6/30/10 $ 36,210,84012. Receivables fo r Service Buybacks as of 6/30/10 302,33913. Market Value of Assets as of 6/30/10 Including Receivables $ 36,513,179

Development of the Actuarial Value of Assets1. Actuarial Value of Assets as of 6/30/09 Used For Rate Setting Purposes $ 40,484,7752. Receivables fo r Service Buybacks as of 6/30/09 208,2233. Actuarial Value of Assets as of 6/30/09 40,276,5524. Employer Contributions 2,170,9395. Employee Contribut ions 1,389,2636. Benefit Payments to Retirees and Beneficiaries (1,045,763)7. Refunds (29,519)8. Lump Sum Payments (8,819)9. Transfers and Miscellaneous Adjustments (85,216)10. Expected Investment Income at 7.75% 3,212,35111. Expected Actuarial Value of Assets $ 45,879,78812. Market Value of Assets as of 6/30/10 $ 36,210,84013. Preliminary Actuarial Value of Assets [(11) + 12) - (11 / 15] 45,235,19114. Maximum Actuarial Value of Assets (130% of (12 47,074,09215. Minimum Actuarial Value of Assets (70% of (12 25,347,58816. Actuarial Value of Assets {Lesser of [(14), Greater of B), (15)]} 45,235,19117. Actuarial Value to Market Value Ratio 124.7%18. Receivables for Service Buybacks as of 6/30/10 302,33919. Actuarial Value of Assets as of 6/30/10 Used for Rate Setting Purposes $ 45,537,530

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE CIlY OF ENONITASEMPLOYER NUMBER 1437

Asset AllocationCaIPERS follows a strategic asset allocation policy that identifies the percentage of funds to be invested ineach asset class. The current target allocation was adopted by the Board in December 2010.The asset allocation and market value of assets shown below reflect the values of the Public EmployeesRetirement Fund (PERF) in its entirety as of June 30, 2010. The assets for CIlY OF ENONITASMISCELLANEOUS PLAN are part of the Public Employees Retirement Fund (PERF) and are investedaccordingly.

(C) (O)(A)Asset Class

(8 )MarketValue

($ Billion) Current Current1) Short-term Investments2) Total Global Fixed Income3) Total Equities4) Inflation Unked (ILAC)5) Total Real Estate6) Alternative Investments

Total Fund

14.1%Alternative

7.5% RealEstate2.5% ILAC

45.1% TotalEquites

9.353.491.9

5.015.228.7

203.51

Allocation4.6%

26.2%45.1%

2.5%7.5%

14.1%100.0%

4.6% Short-termInvestments

26.2% FixedIncome

Target4.0%

16.0%49.0%

4.0%13.0%14.0%

100.0%

1 Differences between investment values above and the values on the Summary of Investments onpage 23 of the Comprehensive Annual Financial Report (Year Ended June 30, 2010) are due todifferences in reporting methods. The Summary of Investments includes Net InvestmentReceivables/Payables.

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CALPERS ACfUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE CI1Y OF ENONITASEMPLOYER NUMBER 1437

CalPERS 20-Year History of Investment ReturnsThe following is a chart with historical annual returns of the Public Employees Retirement Fund for eachfiscal year ending on June 30. Beginning with June 30, 2002 the figures are reported as gross of fees.

25.0% N g...; I-'II I...r- ,- - -20.0%15.0% /r r- - c- f - - c- r-10.0% ! -I r- ;- f - - f - r-LtJ- - - f- - - f- -92 93 94 95 96 97 98 99 00

-15.0%

-20.0%

-25.0% . L C = = = = = = = = = = = = = = = = = = = = = = = = = = ~ : : : : : : = 7

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SUMMARY OF PARTICIPANT DATA

SUMMARY OF VALUATION DATA

ACTIVE MEMBERS

TRANSFeRRED AND TERMINATED MEMBERS

RETIRED MEMBERS AND BENEFICIARIES


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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENGNITASEMPLOYER NUMBER 1437

Summary of Valuation DataJune 30, 2009

1. Active Membersa) Counts 181b) Average Attained Age 45.99c) Average Entry Age to Rate Plan 36.43d) Average Years of Service 9.56e) Average Annual Covered Pay $ 73,303f) Annual Covered Payroll 13,267,844g) Projected Annual Payroll for Contribution Year 14,603,957h) Present Value of Future Payroll 101,669,948

2. Transferred Membersa) Counts 81b) Average Attained Age 47.94c) Average Years of Service 4.26d) Average Annual Covered Pay $ 87,427

3. Terminated Membersa) Counts 70b) Average Attained Age 44.74c) Average Years of Service . 2.94d) Average Annual Covered Pay $ 43,0014. Retired Members and Beneficiariesa) Counts 68b) Average Attained Age 64.69c) Average Annual Benefits $ 12,9745. Active to Retired Ratio 2.66

June 30, 2010175

46.6536.2510.40

$ 76,54113,394,68714,743,573101,117,731

7647.703.86$ 84,600

7245.293.12

$ 48,236

7965.14$ 14,8082.22

Counts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist for those who have service in more than one valuation group. This does not result indouble counting of liabilities.

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE GTY OF ENONITASEMPLOYER NUMBER 1437

Active MembersCounts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist for those who have service in more than one valuation group. This does not result indouble counting of liabilities.

Distribution of Active Members by Age and ServiceYears of Service at Valuation Date

AttainedAge 0- 4 5-9 10-14 15-19 20-25 25+ Total15-24 0 0 0 0 0 0 025-29 11 0 0 0 0 0 1130-34 12 9 1 0 0 0 2235-39 11 5 7 1 0 0 2440-44 3 4 9 1 0 0 1745-49 9 7 4 2 3 2 2750-54 7 6 12 3 6 1 3555-59 5 2 4 3 3 2 1960-64 1 4 2 4 4 0 15

65 and over 1 2 0 1 1 0 5All Ages 60 39 39 15 17 5 175

Distribution of Average Annual Salaries by Age and ServiceYears of Service at Valuation Date

AttainedAge 0-4 5-9 10-14 15-19 20-25 25+ Average15-24 $0 $0 $0 $0 $0 $0 $0

25-29 63,763 0 0 0 0 0 63,76330-34 60,720 72,958 74,496 0 0 0 66,35235-39 59,860 74,530 81,773 47,107 0 0 68,77640-44 48,926 77,410 108,140 127,454 0 0 91,59645-49 62,459 72,515 70,779 89,682 77,977 82,021 71,48950-54 68,754 64,966 86,379 79,402 98,139 127,454 81,77555-59 60,954 112,855 48,211 123,057 92,972 106,589 83,39960-64 97,894 50,681 145,920 97,091 113,802 0 95,735

65 and over 18,182 57,946 0 15,371 63,411 0 42,571All Ages $61,659 $71,298 $87,808 $91,002 $95,312 $100,935 $76,541

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CALPERS AcruARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437

Transferred and Terminated MembersDistribution of Transfers to other CaIPERS Plans by Age and Service

Years of Service at Valuation DateAttained Average

Age 0-4 5-9 10-14 15-19 20-25 25 + Total Salary15-24 0 0 0 0 0 0 0 $025-29 2 0 0 0 0 0 2 65,14230-34 4 0 0 0 0 0 4 45,90035-39 8 2 0 0 0 0 10 74,16140-44 11 3 1 0 0 0 15 87,33545-49 9 4 1 1 0 0 15 92,45150-54 10 3 1 1 0 0 15 80,90655-59 6 1 0 0 0 0 7 121,89960-64 6 0 0 1 0 0 7 73,933

65 and over 0 0 1 0 0 0 1 92,909All Ages 56 13 4 3 0 0 76 84,600

Distribution of Terminated Participants with Funds on Deposit by Age and ServiceYears of Service at Valuation Date

Attained AverageAge 0-4 5-9 10-14 15-19 20-25 25+ Total Salary15-24 0 0 0 0 0 0 0 $0

25-29 6 0 0 0 0 0 6 39,42530-34 12 0 0 0 0 0 12 39,73735-39 8 1 0 0 0 0 9 56,98340-44 4 2 1 0 0 0 7 62,50345-49 6 5 0 0 0 0 11 51,74050-54 4 3 1 2 0 0 10 54,82455-59 7 1 0 0 0 0 8 49,62760-64 7 1 0 0 0 0 8 27,037

65 and over 1 0 0 0 0 0 1 78,523All Ages 55 13 2 2 0 0 72 48,236

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CALPERS AcruARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437

Retired Members and Beneficiaries

Distribution of Retirees and Beneficiaries by Age and Retirement Type*Non- Non- DeathAttained Service Industrial Industrial Industrial Industrial AfterAge Retirement Disability Disability Death Death RetirementUnder 30 0 0 0 0 0 0

30-34 0 0 0 0 0 035-39 0 0 0 0 0 040-44 0 0 0 0 0 045-49 0 0 0 1 0 050-54 0 2 0 1 0 055-59 13 2 1 0 0 260-64 20 0 0 0 0 065-69 17 0 1 1 0 070-74 5 3 0 0 0 175-79 6 0 0 0 0 080-84 2 0 0 0 0 1

85 and Over 0 0 0 0 0 0All Ages 63 7 2 3 0 4

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Ageand Retirement Type*Non- Non- Death

Attained Service Industrial Industrial Industrial Industrial AfterAge Retirement Disability Disability Death Death RetirementUnder 30 $0 $0 $0 $0 $0 $030-34 0 0 0 0 0 035-39 0 0 0 0 0 040-44 0 0 0 0 0 045-49 o. 0 0 942 0 050-54 0 13,809 0 9,513 0 055-59 21,359 9,378 90 0 0 6,53460-64 14,434 0 0 0 0 065-69 17,870 0 46 7,834 0 070-74 13,527 5,556 0 0 0 15,47075-79 16,030 0 0 0 0 080-84 12,272 0 0 0 0 1,339

85 and Over 0 0 0 0 0 0All Ages $16,801 $9,006 $68 $6,096 $0 $7,469

Total000013182019963079

Average$0000

94212,37717,19914,43416,40411,08616,0308,627

0$14,808

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Retired Members and Beneficiaries (continued)Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type*

Non- Non- DeathYears Service Industrial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death RetirementUnder 5 Yrs 40 0 0 3 0 35-9 13 4 1 0 0 0

10-14 7 3 0 0 0 115-19 2 0 1 0 0 020-24 0 0 0 0 0 025-29 1 0 0 0 0 0

30 and Over 0 0 0 0 0 0All Years 63 7 2 3 0 4

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Years Retired andRetirement Type*Non- Non- DeathYears Service Industrial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death RetirementUnder 5 Yrs $19,638 $0 $0 $6,096 $0 $4,802

5-9 13,762 14,534 90 0 0 010-14 9,873 1,635 0 0 0 15,47015-19 9,139 0 46 0 0 020-24 0 0 0 0 0 025-29 6,673 0 0 0 0 0

30 and Over 0 0 0 0 0 0All Years $16,801 $9,006 $68 $6,096 $0 $7,469

Total4618113010

79

Average$17,78713,1748,1356,108

06,673

0$14,808

* Counts of members do not include alternate payees receiving benefits while the member is still working.Therefore, the total counts may not match information on page 25 of the report. Multiple records may exist forthose who have service in more than one coverage group. This does not result in double counting of liabilities.

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APPENDICES APPENDIX A - STATEMENT OF ACTUARIAL DATA, METHODS AND

ASSUMPTIONS

APPENDIX B - SUMMARY OF PRINCIPAL PLAN PROVISIONS

APPENDIX C - GASB STATEMENT NO. 27

APPENDIX D - INVESTMENT RETURN SENSITIVITY ANALYSIS

APPENDIX E - GLOSSARY OF ACTUARIAL TERMS


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APPENDIX A STATEMENT OF ACTUARIAL DATA, METHODS AND ASSUMPTIONS


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CALPERS ACTUARIAL VALUATION - June 30, 2010STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS

Actuarial Data

APPENDIX A

As stated in the Actuarial Certification, the data which serves as the basis of this valuation has beenobtained from the various CaIPERS databases. We have reviewed the valuation data and believe that it isreasonable and appropriate in aggregate. We are unaware of any potential data issues that would have amaterial effect on the results of this valuation, except that data does not always contain the latest salaryinformation for former members now in reciprocal systems and does not recognize the potential forunusually large salary deviation in certain cases such as elected officials. Therefore, salary information inthese cases may not be accurate. These situations are relatively infrequent, however, and when they dooccur, they generally do not have a material impact on the employer contribution rates.

Actuarial MethodsFunding MethodThe actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method.Under this method, projected benefits are determined for all members and the associated liabilities arespread in a manner that produces level annual cost as a percent of pay in each year from the age of hire(ent ry age) to the assumed retirement age. The cost allocated to the current fiscal year is called the normalcost.The actuarial accrued liability for active members is then calculated as the portion of the total cost of theplan allocated to prior years. The actuarial accrued liability for members currently receiving benefits, foractive members beyond the assumed retirement age, and for members entitled to deferred benefits, isequal to the present value of the benefits expected to be paid. No normal costs are applicable for thesepartiCipants.The excess of the total actuarial accrued liability over the actuarial value of plan assets is called theunfunded actuarial accrued liability. Funding requirements are determined by adding the normal cost andan amortization of the unfunded liability as a level percentage of assumed future payrolls. All changes inliability due to plan amendments, changes in actuarial assumptions, or changes in actuarial methodology areamortized separately over a 20-year period. All gains or losses are tracked and amortized over a rolling 30-year period with the exception of special gains and losses in fiscal years 2008-2009, 2009-2010 and 2010-2011. Each of these years' gains or losses will be isolated and amortized over fixed and declining 30 yearperiods (as opposed to the current rolling 30 year amortization). I f a plan's accrued liability exceeds theactuarial value of assets, the annual contribution with respect to the total unfunded liability may not be lessthan the amount produced by a 30-year amortization of the unfunded liability.Additional contributions will be required for any plan or pool if their cash flows hamper adequate fundingprogress by preventing the expected funded status on a market value of assets basis of the plan to either:

Increase by at least 15% by June 30,2043; or Reach a level of 75% funded by June 30, 2043The necessary additional contribution will be obtained by changing the amortization period of the gains andlosses prior to 2009 to a period which will result in the satisfaction of the above criteria. CaIPERS actuarieswill reassess the criteria above when performing each future valuation to determine whether or notadditional contributions are necessary.An exception to the funding rules above is used whenever the application of such rules results ininconsistencies. In these cases a ''fresh start" approach is used. This simply means that the currentunfunded actuarial liability is projected and amortized over a set number of years. As mentioned above, ifthe annual contribution on the total unfunded liability was less than the amount produced by a 3D-yearamortization of the unfunded liability, the plan actuary would implement a 30-year fresh start. However, inthe case of a 3D-year fresh start, just the unfunded liability not already in the (gain)/Ioss base (whichalready is amortized over 30 years) will go into the new fresh start base. In addition, a fresh start is neededin the following situations:

A-1


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CALPERS ACTUARIAL VALUATION - June 30, 2010STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS APPENDIX A

1) when a positive payment would be required on a negative unfunded actuarial liability (orconversely a negative payment on a positive unfunded actuarial liability); or2) when there are excess assets, rather than an unfunded liability. In this situation a 30-year freshstart is used, unless a longer fresh start is needed to avoid a negative total rate.

I t should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases,the fresh start period is set by the actuary at what he deems appropriate, and will not be less than fiveyears nor greater than 30 years.Asset Valuation MethodIn order to dampen the effect of short term market value fluctuations on employer contribution rates, thefollowing asset smoothing technique is used. First an Expected Value of Assets is computed by bringingforward the prior year's Actuarial Value of Assets and the contributions received and benefits paid during theyear at the assumed actuarial rate of return. The Actuarial Value of Assets is then computed as theExpected Value of Assets plus one-fifteenth of the difference between the actual Market Value of Assets andthe Expected Value of Assets as of the valuation date. However il'l no case will the Actuarial Value of Assetsbe less than 80% or greater than 120% of the actual Market Value of Assets.In June 2009, the CaIPERS Board adopted changes to the asset smoothing method in order to phase in overa three year period the impact of the -24% investment loss experienced by CaIPERS in fiscal year 2008-2009. The following changes were adopted:

Increase the corridor limits for the actuarial value of assets from 80%-120% of market value to60%-140% of market value on June 3 0 ~ 2009Reduce the corridor limits for the actuarial value of assets to 70%-130% of market value on June30,2010Return to the.80%-120% of market value corridor limits for the actUarial value of assets on June30, 2011 and thereafter

MiscellaneousSuperfunded StatusI f a rate plan is superfunded (actuarial value of assets exceeds the present value of benefits), as of themost recently completed annual valuation, the employer may cover their employees' member contributions(both taxed and tax-deferred) using their employer assets during the fiscal year for which this valuationapplies. This would entail transferring assets within the Public Employees' Retirement Fund (PERF) from theemployer account to the member accumulated contribution accounts. This change was implementedeffective January 1, 1999 pursuant to Chapter 231 (Assembly Bill 2099) which added Government CodeSection 20816.Superfunded status applies only to individual plans, not risk pools. For rate plans within a risk pool,actuarial value of assets is the sum of the rate plan's side fund plus the rate plan's pro-rata share of nonside fund assets.Internal Revenue Code Section 415The limitations on benefits imposed by Internal Revenue Code Section 415 were not taken into account inthis valuation. The effect of these limitat ions has been deemed immaterial on the overall results.Internal Revenue Code Section 401(a)(17)The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) were taken intoaccount in this valuation. Each year the impact of any changes in this compensation limitation since theprior valuation is included and amortized as part of the actuarial gain or loss base.

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Actuarial AssumptionsEconomic Assumptions

Investment Return7.75% compounded annually (net of expenses). This assumption is used for all plans.

Salary Growth

APPENDIX A

Annual increases vary by category, entry age, and duration of service. Sample assumed increasesare shown below.Public A2eng: Miscellaneous

Duration of Service Entr:yAge 20 Entr:yAge 30 Entr:yAge 400 0.1445 0.1265 0.10051 0.1215 0.1075 0.08752 0.1035 0.0935 0.07753 0.0905 0.0825 0.06954 0.0805 0.0735 0.06355 0.0725 0.0675 0.058510 0.0505 0.0485 0.043515 0.0455 0.0435 0.038520 0.0415 0.0395 0.035525 0.0385 0.0385 0.035530 0.0385 0.0385 0.0355

Public A2eng: FireDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1075 0.1075 0.10451 0.0975 0.0965 0.08752 0.0895 0.0855 0.07253 0.0825 0.0775 0.06254 0.0765 0.0705 0.05355 0.0715 0.0645 0.047510 0.0535 0.0485 0.037515 0.0435 0.0415 0.036520 0.0395 0.0385 0.035525 0.0375 0.0375 0.035530 0.0375 0.0375 0.0355

Public A2eng: PoliceDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1115 0.1115 0.11151 0.0955 0.0955 0.09552 0.0835 0.0835 0.08053 0.0745 0.0725 0.06654 0.0675 0.0635 0.05755 0.0615 0.0575 0.0505

10 0.0475 0.0445 0.036515 0.0435 0.0415 0.035520 0.0395 0.0385 0.035525 0.0375 0.0365 0.035530 0.0375 0.0365 0.0355

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Public A!leng County Peace OfficersDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1315 0.1315 0.13151 0.1115 0.1085 0.10552 0.0965 0.0915 0.08653 0.0845 0.0795 0.07354 0.0755 0.0695 0.06355 0.0685 0.0625 0.055510 0.0485 0.0445 0.040515 0.0435 0.0405 0.038520 0.0395 0.0385 0.036525 0.0375 0.0365 0.035530 0.0375 0.0365 0.0355

The Miscellaneous salary scale is used for Local Prosecutors. The Police salary scale is used for Other Safety, Local Sheriff, and School Police.Overall Payroll Growth

APPENDIX A

3.25% compounded annually (used in projecting the payroll over which the unfunded liability isamortized). This assumption is used for all plans.Inflation3.00% compounded annually. This assumption is used for all plans.Non-valued Potential Additional Liabilit.iesThe potential liability loss for a cost-of-living increase exceeding the 3% inflation assumption, andany potential liability loss from future member service purchases are not reflected in the valuation.

Miscellaneous loading FactorsCredit for Unused Sick LeaveFinal Average Salary is increased by 1% for those plans with the provision providing Credit forUnused Sick Leave.Conversion of Employer Paid Member Contributions (EPMC)Final Average Salary is increased by the Employee Contribution Rate for those plans with theprovision providing for the Conversion of Employer Paid Member Contributions (EPMC) during thefinal compensation period.Norris Decision (Best Factors)

Employees hired prior to July 1, 1982 have projected benefit amounts increased in order to reflectthe use of "Best Factors" in the calculation of optional benef it forms. This is due to a 1983 SupremeCourt decision, known as the Norris decision, which required males and females to be treatedequally in the determination of benefit amounts. Consequently, anyone already employed at thattime is given the best possible conversion factor when optional benefits are determined. No loadingis necessary for employees hired after July 1, 1982.

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CALPERS ACTUARIAL VALUATION - June 30, 2010SfATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONSDemographic Assumptions

Pre-Retirement Mortality

APPENDIX A

Non-Industrial Death Rates vary by age and gender. Industrial Death rates vary by age. Seesample rates in table below. The non-industrial death rates are used for all plans. The industrialdeath rates are used for Safety Plans (except for Local Prosecutor safety members where thecorresponding Miscellaneous Plan does not have the Industrial Death Benefit).Non-Industrial Death Industrial Death(Not Job-Related) (Job-Related)

Age Male Female Male and Female20 0.00047 0.00016 0.0000325 0.00050 0.00026 0.0000730 0.00053 0.00036 0.0001035 0.00067 0.00046 0.0001240 0.00087 0.00065 0.0001345 0.00120 0.00093 0.0001450 0.00176 0.00126 0.0001555 0.00260 0.00176 0.0001660 0.00395 0.00266 0.0001765 0.00608 0.00419 0.0001870 0.00914 0.00649 0.0001975 0.01220 0.00878 0.0002080 0.01527 0.01108 0.00021

Miscellaneous Plans usually have Industrial Death rates set to zero unless the agency has specificallycontracted for Industrial Death benefits. I f so, each Non-Industrial Death rate shown above will besplit into two components: 99% will become the Non-Industrial Death rate and 1% will become theIndustrial Death rate.Post-Retirement Mortality

Rates vary by age, type of retirement and gender. See sample rates in table below. These ratesare used for all plans.Non-Industrially Disabled Industrial ly DisabledHealthy Recipients (Not Job-Related) (Job-Related)

Age Male Female Male Female Male Female50 0.00239 0.00125 0.01632 0.01245 0.00443 0.0035655 0.00474 0.00243 0.01936 0.01580 0.00563 0.0054660 0.00720 0.00431 0.02293 0.01628 0.00777 0.0079865 0.01069 0.00775 0.03174 0.01969 0.01388 0.0118470 0.01675 0.01244 0.03870 0.03019 0.02236 0.0171675 0.03080 0.02071 0.06001 0.03915 0.03585 0.0266580 0.05270 0.03749 0.08388 0.05555 0.06926 0.0452885 0.09775 0.07005 0.14035 0.09577 0.11799 0.0801790 0.16747 0.12404 0.21554 0.14949 0.16575 0.1377595 0.25659 0.21556 0.31025 0.23055 0.26108 0.23331100 0.34551 0.31876 0.45905 0.37662 0.40918 0.35165

105 0.58527 0.56093 0.67923 0.61523 0.64127 0.60135110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

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CALPERS ACTUARIAL VALUATION - June 30, 2010STATEMENT OFACfUARIAL METHODS AND ASSUMPTIONS

APPENDIX A

Marital StatusFor active members, a percentage married upon retirement is assumed according to the followingtable.

Member CategoryMiscellaneous MemberLocal PoliceLocal FireOther Local SafetySchool Police

Percent Married85%90%90%90%90%

Age of SpouseI t is assumed that female spouses are 3 years younger than male spouses. This assumption isused for all plans.

Terminated MembersIt is assumed that terminated members refund immediately if non-vested. Terminated memberswho are vested are assumed to follow the same service retirement pattern as active members butwith a load to reflect the expected higher rates of retirement, especially at lower ages. Thefollowing table shows the load factors that are applied to the service retirement assumption foractive members to obtain the service retirement pattern for separated vested members:

Age505152 through 5657 through 60

61 through 6465 and above

Load Factor450%250%200%150%125%

100% (no change)

Termination with RefundRates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans.See sample rates in tables below.

Public A ~ e n 9 : MiscellaneousDuration of

Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 450 0.1742 0.1674 0.1606 0.1537 0.1468 0.14001 0.1545 0.1477 0.1409 0.1339 0.1271 0.12032 0.1348 0.1280 0.1212 0.1142 0.1074 0.10063 0.1151 0.1083 0.1015 0.0945 0.0877 0.08094 0.0954 0.0886 0.0818 0.0748 0.0680 0.06125 0.0212 0.0193 0.0174 0.0155 0.0136 0.011610 0.0138 0.0121 0.0104 0.0088 0.0071 0.005515 0.0060 0.0051 0.0042 0.0032 0.0023 0.001420 0.0037 0.0029 0.0021 0.0013 0.0005 0.000125 0.0017 0.0011 0.0005 0.0001 0.0001 0.000130 0.0005 0.0001 0.0001 0.0001 0.0001 0.000135 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001

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CALPERS AGUARIAL VALUATION -June 3D, 2010 APPENDIX ASTATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONSPublic Aseng Safety

Duration of Service Fire Police County Peace Officer0 0.0710 0.1013 0.09971 0.0554 0.0636 0.07822 0.0398 0.0271 0.05663 0.0242 0.0258 0.04374 0.0218 0.0245 0.04145 0.0029 0.0086 0.0145

10 0.0009 0.0053 0.008915 0.0006 0.0027 0.004520 0.0005 0.0017 0.002025 0.0003 0.0012 0.000930 0.0003 0.0009 0.000635 0.0003 0.0009 0.0006

The Police Termination and Refund rates are used for Public Agency Local Prosecutors, Other Safety, LocalSheriff, and School Police.Termination with Vested BenefitsRates vary by entry age and service for Miscellaneous Plans. Rates vary by service for SafetyPlans. See sample rates in tables below.

Public Aseng MiscellaneousDuration ofService Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40

5 0.0656 0.0597 0.0537 0.0477 0.041810 0.0530 0.0466 0.0403 0.0339 0.000015 0.0443 0.0373 0.0305 0.0000 0.000020 0.0333 0.0261 0.0000 0.0000 0.000025 0.0212 0.0000 0.0000 0.0000 0.000030 0.0000 0.0000 0.0000 0.0000 0.000035 0.0000 0.0000 0.0000 0.0000 0.0000

Public Agency SafetyDuration of County PeaceService Fire Police Officer

5 0.0162 0.0163 0.026510 0.0061 0.0126 0.020415 0.0058 0.0082 0.013020 0.0053 0.0065 0.007425 0.0047 0.0058 0.004330 0.0045 0.0056 0.003035 0.0000 0.0000 0.0000

When a member is eligible to retire, the termination with vested benefits probability is set tozero. Afte r terminat ion with vested benefits, a miscellaneous member is assumed to retire at age 59and a safety member at age 54. The Police Termination with vested benefits rates are used for Public Agency LocalProsecutors, Other Safety, Local Sheriff, and School Police.

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CALPERS AITUARIAL VALUATION - June 30, 2010STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS APPENDIX A

Non-Industrial (N9t Job-Related) DisabilityRates vary by age and gender for Miscellaneous Plans.Rates vary by age and category for Safety Plans.

Miscellaneous Fire PoliceAge Male Female Male and Female Male and Female---20 0.0001 0.0001 0.0001 0.000125 0.0001 0.0001 0.0001 0.000130 0.0002 0.0002 0.0001 0.000235 0.0006 0.0009 0.0001 0.000340 0.0015 0.0016 0.0001 0.000445 0.0025 0.0024 0.0002 0.000550 0.0033 0.0031 0.0005 0.000855 0.0037 0.0031 0.0010 0.001360 0.0038 0.0025 0.0015 0.0020

County Peace OfficerMale and Female

0.00010.00010.00010.00040.00070.00130.00180.00100.0006

The Miscellaneous Non-Industrial Disability rates are used for Local Prosecutors. The Police Non-Industrial Disability rates are used for other Safety, Local Sheriff, and SchoolPolice.

Industrial (Job-Related) DisabilityRates vary by age and category.Age Fire Police County Peace Officer20 0.0002 0.0007 0.000325 0.0012 0.0032 0.001530 0.0025 0.0064 0.003135 0.0037 0.0097 0.004640 0.0049 0.0129 0.006345 0.0061 0.0161 0.007850 0.0074 0.0192 0.010155 0.0721 0.0668 0.017360 0.0721 0.0668 0.0173

The Police Industrial Disability rates are used for Local Sheriff and other Safety. Fifty Percent of the Police Industrial Disability rates are used for School Police. One Percent of the Police Industrial Disability rates are used for Local Prosecutors. Normally, rates are zero for Miscellaneous Plans unless the agency has specifically contractedfor Industrial Disability benefits. I f so, each miscellaneous non-industrial disability rate will besplit into two components: 50% will become the Non-Industrial Disability rate and 50% willbecome the Industrial Disability rate.

Service Retirement .Retirement rate vary by age, service, and formula, except for the safety Y2 @ 55 and 2% @ 55formulas, where retirement rates vary by age only.

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CALPERS ACfUARIAL VALUATION - June 30, 2010STATEMENT OF ACfUARIAL METHODS AND ASSUMPTIONSPublic Agency Miscellaneous 1.5% @ 65

Age505152535455565758596061626364656667686970

5 Years0.0080.0070.0100.0080.0120.0180.0150.0200.0240.0280.0490.0620.1040.0990.0970.1400.0920.1290.0920.0920.103

10 Years0.0110.0100.0140.0120.0160.0250.0210.0280.0330.0390.0690.0870.1460.1390.1360.1970.1300.1810.1290.1300.144

Duration of Service15 Years 20 Years

0.013 0.0150.012 0.0130.017 0.0190.015 0.0170.019 0.0220.0310.0250.0330.0400.0480.0830.1060.1770.1690.1650.2400.1570.2200.1560.1580.175

0.035.0.0290.0380.0460.0540.0940.1200.2000.1910.1860.2710.1770.2490.1770.1780.198

25 Years0.0170.0150.0210.0190.0250.0380.0320.0430.0520.0600.1050.1330.2230.2130.2090.3020.1980.2770.1970.1990.221

Public Agency Miscellaneous 2% @ 60Duration of Service

30 Years0.0190.0170.0240.0220.0280.0430.0360.0480.0580.0670.1180.1500.2510.2390.2330.3390.2220.3110.2210.2240.248

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.011 0.015 0.018 0.021 0.023 0.0265152535455565758596061626364656667686970

0.0090.0130.0110.0150.0230.0190.0250.0300.0350.0620.0790.1320.1260.1220.1730.1140.1590.1130.1140.127

0.0130.0180.0160.0210.0320.0270.0350.0420.0490.0870.1100.1860.1780.1710.2430.1600.2230.1590.1610.178

0.0160.0220.0190.0250.0390.0320.0420.0510.0600.1050.1340.2250.2160.2070.2960.1940.2710.1930.1950.216

0.0180.0250.0220.0280.0440.0370.0480.0580.0680.1190.1520.2550.2440.2340.3340.2190.3070.2180.2200.244

0.0200.0280.0250.0320.0490.0410.0540.0650.0760.1330.1690.2840.2720.2620.3730.2450.3420.2430.246

0.273

0.0230.0310.0280.0360.0550.0460.0600.0730.0850.1490.1900.3190.3050.2930.4180.2740.3840.2730.2760.306

APPENDIX A

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CALPERS ACTUARIAL VALUATION - June 30, 2010 APPENDIX ASTATEMENT. OF ACTUARIAL METHODS AND ASSUMPTIONS

Public Agency Miscellaneous 2% @ 55Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.015 0.020 0.024 0.029 0.033 0.03951 0.013 0.016 0.020 0.024 0.027 0.03352 0.014 0.018 0.022 0.027 0.030 0.03653 0.017 0.022 0.027 0.032 0.037 0.04354 0.027 0.034 0.041 0.049 0.056 0.06755 0.050 0.064 0.078 0.094 0.107 0.12756 0.045 0.057 0.069 0.083 0.095 0.11357 0.048 0.061 0.074 0.090 0.102 0.12258 0.052 0.066 0.080 0.097 0.110 0.13159 0.060 0.076 0.092 0.111 0.127 0.15160 0.072 0.092 0.112 0.134 0.153 0.18261 0.089 0.113 0.137 0.165 0.188 0.22462 0.128 0.162 0.197 0.237 0.270 0.32263 0.129 0.164 0.199 0.239 0.273 0.32564 0.116 0.148 0.180 0.216 0.247 0.29465 0.174 0.221 0.269 0.323 0.369 0.43966 0.135 0.171 0.208 0.250 0.285 0.34067 0.133 0.169 0.206 0.247 0.282 0.33668 0.118 0.150 0.182 0.219 0.250 0.29769 0.116 0.147 0.179 0.215 0.246 0.29370 0.138 0.176 0.214 0.257 0.293 0.349

Public Agency Miscellaneous 2.5% @ 55Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.026 0.033 0.040 0.048 0.055 0.06251 0.021 0.026 0.032 0.038 0.043 0.04952 0.021 0.026 0.032 0.038 0.043 0.04953 0.026 0.033 0.040 0.048 0.055 0.06254 0.043 0.054 0.066 0.078 0.089 0.10155 0.088 0.112 0.136 0.160 0.184 0.20856 0.055 0.070 0.085 0.100 0.115 0.13057 0.061 0.077 0.094 0.110 0.127 0.14358 0.072 0.091 0.111 0.130 0.150 0.16959 0.083 0.105 0.128 0.150 0.173 0.19560 0.088 0.112 0.136 0.160 0.184 0.20861 0.083 0.105 0.128 0.150 0.173 0.19562 0.121 0.154 0.187 0.220 0.253 0.28663 0.105 0.133 0.162 0.190 0.219 0.24764 0.105 0.133 0.162 0.190 0.219 0.24765 0.143 0.182 0.221 0.260 0.299 0.33866 0.105 0.133 0.162 0.190 0.219 0.24767 0.105 0.133 0.162 0.190 0.219 0.24768 0.105 0.133 0.162 0.190 0.219 0.247

.69 0.105 0.133 0.162 0.190 0.219 0.24770 0.125 0.160 0.194 0.228 0.262 0.296

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Public Agency Miscellaneous 2.7% @ 55Age505152535455565758596061626364656667686970

Age505152535455 .565758596061626364656667686970

5 Years0.0280.0220.0220.0280.0440.0910.0610.0630.0740.0830.0880.0850.1240.1070.1070.1460.1070.1070.1070.1070.129

10 Years0.0350.0280.0280.0350.0560.1160.0770.0810.0950.1050.1120.1090.1580.1370.1370.1860.1370.1370.1370.1370.164


0.043 0.0500.034 0.0400.034 0.0400.043 0.0500.0680.1400.0940.0980.1150.1280.1360.1320.1910.1660.166,0.2250.1660.1660.1660.1660.199

0.0800.1650.1100.1150.1350.1500.1600.1550.2250.1950.1950.2650.1950.1950.1950.1950.234

25 Years0.0580.0460.0460.0580.0920.1900.1270.1320.1550.1730.1840.1780.2590.2240.2240.3050.2240.2240.2240.2240.269

Public Agency Miscellaneous 3% @ 605 Years0.0260.0210.0190.0250.0390.0830.0550.0610.0720.0800.0940.0880.1270.1100.1100.1490.1100.1100.1100.1100.132

10 Years0.0330.0260.0250.0320.0490.1050.0700.0770.0910.1020.1190.1120.1610.1400.1400.1890.1400.1400.1400.1400.168


0.040 0.0480.032 0.0380.0300.0380.0600.1280.0850.0940.1110.1230.1450.1360.1960.1700.1700.2300.1700.1700.1700.1700.204

0.0350.0450.0700.1500.1000.1100.1300.1450.1700.1600.2300.2000.2000.2700.2000.2000.2000.2000.240

25 Years0.0550.0430.0400.0520.0810.1730.1150.1270.1500.1670.1960.1840.2650.2300.2300.3110.2300.2300.2300.2300.276

30 Years0.0650.0520.0520.0650.1040.2150.1430.1500.1760.1950.2080.2020.2930.2540.2540.3450.2540.2540.2540.2540.304

30 Years0.0620.0490.0460.0590.0910.1950.1300.1430.1690.1890.2210.2080.2990.2600.2600.3510.2600.2600.2600.2600.312

APPENDIX A

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8gg505152535455

Public Agency Fire 112 @ 55 and 2% @ 55Rate Age0.01588 560.00000 570.03442 580.01990 590.04132 60

0.07513

Rate0.110790.000000.094990.044091.00000

Public Agency Police 112 @ 55 and 2% @ 558gg Rate 8gg Rate50 0.02552 56 0.0692151 0.00000 57 0.0511352 0.01637 58 0.0724153 0.02717 59 0.0704354 0.00949 60 1.0000055 0.16674

Public Agency Police 2%@ 50Duration of ServiceAge 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.014 0.014 0.014 0.014 0.025 0.04551 0.012 0.012 0.012 0.012 0.023 0.04052 0.026 0.026 0.026 0.026 0.048 0.08653 0.052 0.052 0.052 0.052 0.096 0.17154 0.070 0.070 0.070 0.070 0.128 0.22755 0.090 0.090 0.090 0.090 0.165 0.29356 0.064 0.064 0.064 0.064 0.117 0.20857 0.071 0.071 0.071 0.071 0.130 0.23258 0.063 0.063 0.063 0.063 0.115 0.20559 0.140 0.140 0.140 0.140 0.174 0.25460 0.140 0.140 0.140 0.140 0.172 0.25161 0.140 0.140 0.140 0.140 0.172 0.25162 0.140 0.140 0.140 0.140 0.172 0.25163 0.140 0.140 0.140 0.140 0.172 0.25164 0.140 0.140 0.140 0.140 0.172 0.25165 1.000 1.000 1.000 1.000 1.000 1.000

APPENDIX A

These rates also apply to Local Prosecutors, Local Sheriff, School Police, and Other Safety

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CALPERS ACTUARIAL VALUATION - June 30, 2010 APPENDIX ASTATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONSPublic Agency Fire 2%@50

Duration of ServiceAge 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.007 0.007 0.007 0.007 0.010 0.01551 0.008 0.008 0.008 0.008 0.013 0.01952 0.017 0.017 0.017 0.017 0.027 0.04053 0.047 0.047 0.047 0.047 0.072 0.10754 0.064 0.064 0.064 0.064 0.098 0.14755 0.087 0.087 0.087 0.087 0.134 0.20056 0.078 0.078 0.078 0.078 0.120 0.18057 0.090 0.090 0.090 0.090 0.139 0.20858 0.079 0.079 0.079 0.079 0.122 0.18259 0.073 0.073 0.073 0.073 0.112 0.16860 0.114 0.114 0.114 0.114 0.175 0.26261 0.114 0.114 0.114 0.114 0.175 0.26262 0.114 0.114 0.114 0.114 0.175 0.26263 0.114 0.114 0.114 0.114 0.175 0.26264 0.114 0.114 0.114 0.114 0.175 0.26265 1.000 1.000 1.000 1.000 1.000 1.000

Public Agency Police 3%@ 55Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.019 0.019 0.019 0.019 0.040 0.06051 0.024 0.024 0.024 0.024 0.049 0.07452 0.024 0.024 0.024 0.024 0.051 0.07753 0.059 0.059 0.059 0.059 0.121 0.18354 0.069 0.069 0.069 0.069 0.142 0.21555 0.116 0.116 0.116 0.116 0.240 0.36356 0.076 0.076 0.076 0.076 0.156 0.23657 0.058 0.058 0.058 0.058 0.120 0.18158 0.076 0.076 0.076 0.076 0.157 0.23759 0.094 0.094 0.094 0.094 0.193 0.29260 0.141 0.141 0.141 0.141 0.290 0.43861 0.094 0.094 0.094 0.094 0.193 0.29262 0.118 0.118 0.118 0.118 0.241 0.36563 0.094 0.094 0.094 0.094 0.193 0.29264 0.094 0.094 0.094 0.094 0.193 0.29265 1.000 1.000 1.000 1.000 1.000 1.000


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CALPERS ACTUARIAL VALUATION - June 30, 2010 APPENDix ASTATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONSPublic Agency Fire 3%@55

Duration of ServiceAge 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.012 0.012 0.012 0.018 0.028 0.03351 0.008 0.008 0.008 0.012 0.019 0.02252 0.018 0.018 0.018 0.027 0.042 0.05053 0.043 0.043 0.043 0.062 0.098 0.11454 0.057 0.057 0.057 0.083 0.131 0.15255 0.092 0.092 0.092 0.134 0.211 0.24656 0.081 0.081 0.081 0.118 0.187 0.21857 0.100 0.100 0.100 0.146 0.230 0.26858 0.081 0.081 0.081 0.119 0.187 0.21959 0.078 0.078 0.078 0.113 0.178 0.20860 0.117 0.117 0.117 0.170 0.267 0.31261 0.078 0.078 0.078 0.113 0.178 0.20862 0.098 0.098 0.098 0.141 0.223 0.26063 0.078 0.078 0.078 0.113 0.178 0.20864 0.078 0.078 0.078 0.113 0.178 0.20865 1.000 1.000 1.000 1.000 1.000 1.000

Public Agency Police 3%@ 50Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years---50 0.070 0.070 0.070 0.131 0.193 0.24951 0.050 0.050 0.050 0.095 0.139 0.18052 0.061 0.061 0.061 0.116 0.171 0.22053 0.069 0.069 0.069 0.130 0.192 0.24754 0.071 0.071 0.071 0.134 0.197 0.25555 0.090 0.090 0.090 0.170 0.250 0.32256 0.069 0.069 0.069 0.130 0.191 0.24757 0.080 0.080 0.080 0.152 0.223 0.28858 0.087 0.087 0.087 0.164 0.242 0.31259 0.090 0.090 0.090 0.170 0.251 0.323. 60 0.135 0.135 0.135 0.255 0.377 0.48561 0.090 0.090 0.090 0.170 0.251 0.32362 0.113 0.113 0.113 0.213 0.314 0.40463 0.090 0.090 0.090 0.170 0.251 0.32364 0.090 0.090 0.090 0.170 0.251 0.32365 1.000 1.000 1.000 1.000 1.000 1.000


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CALPERS ACTUARIAL VALUATION - June 30, 2010 APPENDIX ASTATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONSPublic Agency Fire 3%@50

Duration of ServiceAge 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.034 0.034 .0.034 0.048 0.068 0.08051 0.046 0.046 0.046 0.065 0.092 0.10952 0.069 0.069 0.069 0.097 0.138 0.16353 0.084 0.084 0.084 0.117 0.166 0.19754 0.103 0.103 0.103 0.143 0.204 0.24155 0.127 0.127 0.127 0.177 0.252 0.29856 0.121 0.121 0.121 0.169 0.241 0.28557 0.101 0.101 0.101 0.141 0.201 0.23858 0.118 0.118 0.118 0.165 0.235 0.27959 0.100 0.100 0.100 0.140 0.199 0.23660 0.150 0.150 0.150 0.210 0.299 0.35461 0.100 0.100 0.100 0.140 0.199 0.23662 0.125 0.125 0.125 0.175 0.249 0.29563 0.100 0.100 0.100 0.140 0.199 0.23664 0.100 0.100 0.100 0.140 0.199 0.23665 1.000 1.000 1.000 1.000 1.000 1.000

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APPENDIX B SUMMARY OF MAJOR BENEFIT OPTIONS

DESCRIPTIONS OF PRINCIPAL PLAN PROVISIONS


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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE CTIY OF ENCINITASEMPLOYER NUMBER 1437Summary of Major Benefit Options

APPENDIX B

Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisionsis in the following section of this Appendix.Coverage Group

70001 70002 70401 70402 70403Benefit ProvisionBenefit Formula 2.0% @ 55 2.7% @ 55 2.0% @ 55 2.0% @ 55 2.7% @ 55Social Security Coverage No No No No NoFull/Modified Full Full Full Full FullFinal Average Compensation Period 12 mos. 12 mos. 12 mos. 12 mos. 12 mos.Sick Leave Credit No No Yes No YesNon-Industrial Disability Standard Standard Standard Standard StandardIndustrial Disability No No No No NoPre-Retirement Death Benefits

IOptional Settlement 2W No No No No No1959 Survivor Benefit Level Level 3 Level 3 Level 3 No Level 3Special No No No No NoAlternate (firefighters) No No No No NoPost-Retirement Death BenefitsLump Sum $500 $500 $500 $500 $500Survivor Allowance (PRSA) No No No No NoCOLA 2% 2% 2% 2% 2%Employee ContributionsContractual Employer Paid No No No No NoContractual Employee Cost Sharing 0% 0% 0% 0% 0%

-

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CALPERS ACTUARIAL VALUATION - June 30, 2010MISCELlANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437APPENDIX B

DE-SCRIPTION OF PRINCIPAL PLAN PROVISIONSThe following is a description of the principal plan provisions used in calculating costs and liabilities. We haveindicated whether a plan provision is standard or optional. Standard benefits are applicable to all members whileoptional benefits vary among employers. Optional benefits that apply to a single period of time, such as GoldenHandshakes, have not been included. Many of the statements in this summary are general in nature, and areintended to provide an easily understood summary of the complex Public Employees' Retirement Law. The law itselfgoverns in all situations.

Service RetirementEligibilityA CaIPERS member becomes eligible fo r Service Retirement upon attainment of age 50 with at least 5 years ofcredited service (total service across all CaIPERS employers, and with certain other Retirement Systems with whichCaIPERS has reCiprocity agreements). For employees hired into a plan with the 1.5% at 65 formula, eligibility forservice retirement is age 55 with at least 5 years of service.BenefitThe Service Retirement benefit is a monthly allowance equal to the product of the benefit factor, years ofService,and final compensation. The benefit factor depends on the benefit formula specified in your agency's contract. The table below showsthe factors for each of the available formulas. Factors vary by the member's age at retirement. Listed are thefactors for retirement-at whole year ages:Miscellaneous Plan Formulas

Retirement Age 1.5% at 65 2% at 60 2%at55 2.5% at 55 2.7% at 55 3% at 60

50 0.5000% 1.092% 1.426% 2.0% 2.0% 2.0%51 0.5667% 1.156% 1.522% 2.1% 2.14% 2.1%52 0.6334% 1.224% 1.628% 2.2% 2.28% 2.2%53 0.7000% 1.296% 1.742% 2.3% 2.42% 2.3%54 0.7667% 1.376% 1.866% 2.4% 2.56% 2.4%55 0.8334% 1.460% 2.0% 2.5% 2.7% 2.5%56 0.9000% 1.552% 2.052% 2.5% 2.7% 2.6%57 0.9667% 1.650% 2.104% 2.5% 2.7% 2.7%58 1.0334% 1.758% 2.156% 2.5% 2.7% 2.8%59 1.1000% 1.874% 2.210% 2.5% 2.7% 2.9%60 1.1667% 2.0% 2.262% 2.5% 2.7% 3.0%61 1.2334% 2.134% 2.314% 2.5% 2.7% 3.0%62 1.3000% 2.272% 2.366% 2.5% 2.7% 3.0%63 1.3667% 2.272% 2.366% 2.5% 2.7% 3.0%64 1.4334% 2.272% 2.366% 2.5% 2.7% 3.0%

65&Up 1.5000% 2.418% 2.418% 2.5% 2.7% 3.0%

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CALPERS ACfUARIAL VALUATION - June 30, 2010MISCELLANEOUS PLAN OF THE OTY OF ENONITASEMPLOYER NUMBER 1437Safety Plan Formulas

Retirement '12 at 55 * 2% at55Age50 1.783% 1.426%51 1.903% 1.522%52 2.035% 1.628%53 2.178% 1.742%54 2.333% 1.866%

55&Up 2.5% 2.0%

2% at 50

2.0%2.14%2.28%2.42%2.56%2.7%

3%at55

2.40%2.52%2.64%2.76%2.88%3.0%

APPENDIX B

3% at 50

3.0%3.0%3.0%3.0%3.0%3.0%

* For this formula, the benefit factor also varies by entry age. The factors shown are for members with an entry ageof 35 or greater. I f entry age is less than 35, then the age55 benefit factor is 50% divided by the differencebetween age 55 and entry age. The benefit factor for ages priorto age 55 is the same proportion of the age 55benefit factor as in the above table.

The years ofservice is the amount credited by CaIPERS to a member while he or she is employed in this group(or for other periods that are recognized under the employer's contract withCaIPERS). For a member who hasearned service with multiple CaIPERS employers, the benefrt: from each employer is calculated separatelyaccording to each employer's contract, and then added together for the total allowance. An agency maycontract for an optional benefit where any unused sick leave accumulatedat the time of retirement will beconverted to credited service at a rate of 0.004 years of service for each dayof sick leave. The fina l compensation is the monthly average of the member's highest 36 or 12 consecutive months' full-timeequivalent monthly pay (no matter which CaIPERS employer paid this compensation). The standard benefit is36months. Employers have the option of providing a final compensation equal to the highest 12 consecutivemonths. Final compensation must be defined by the highest 36 consecutive months'pay under the 1.5% at 65formula. Employees must be covered by Social Security with the 1.5% at 65 formula. Social Security is optional for all

other benefit formulas. For employees covered bySocial Security, the Modified formula is the standard benefit.Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final compensationis less than $400). Employers may contract for theFull benefit with Social Security that will eliminate the offsetapplicable to the final compensation. For employees not covered bySocial Security, the Full benefit is paid withno offsets. Auxiliary organizationsof the CSUC system may elect reduced contribution rates, in which case theoffset is $317 if members are not covered by Social Security or $513 if members are covered by Social Security. The Miscellaneous Service Retirement benefi tis not capped. The Safety Service Retirement benefit is capped at

90% of final compensation.

Vested Deferred RetirementEligibility for Deferred StatusA CaIPERS member becomes eligible for a deferred vested retirement benefit whenhe or she leaves employment,keeps his or her contribution account balance on deposit withCaIPERS, and has earned at least 5 years of creditedservice (total service across all CaIPERS employers, and with certain other Retirement Systems with which CaIPERShas reciprocity agreements).Eligibility to Start Receiving BenefitsThe CaIPERS member becomes eligible to receive the deferred retirement benefit upon satisfying the eligibilityrequirements for Deferred Status and upon attainmentof age 50 (55 for employees hired into a 1.5%@ 65 plan).

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APPENDIX B

The vested deferred retirement benefit is the same as the Service Retirement benefit, where the benefit factor isbased on the member's age at allowance commencement. For members who have earned service with multipleCaIPERS employers, the benefit from each employer is calculated separately according to each employer's contract,and then added together for the total allowance.

Non-Industrial (Non-Job Related) Disability RetirementEligibilityA CaIPERS member is eligible for Non-Industrial Disability Retirement if he or she becomes disabled and has at least5 years of credited service (total service across all CaIPERS employers, and with certain other Retirement Systemswith which CaIPERS has reciprocity agreements). There is no special age requirement. Disabledmeans the memberis unable to perform his or her job because of an illness or injury which is expected to be permanent or to lastindefinitely. The illness or injury does not have to be job related. A CaIPERS member must be actively employed byany CaIPERS employer at the time of disability in order to be eligible for this benefit.Standard BenefitThe standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8% of finalcompensation, multiplied by service, which is determined as follows: selvice is CaIPERS credited service, for members with less than 10 years of service or greater than 18.518 yearsof service; or.. service is CaIPERS credited service plus the additional number of years that the member would have workeduntil age 60, for members with at least 10 years but not more than 18.518 years of service. The maximumbenefit in this case is 33 1/3% of Final Compensation.Improved BenefitEmployers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefitprovides a monthly allowance equal to 30% of final compensation for the first 5 years of service, plus 1% for eachadditional year of service to a maximum of 50% of final compensation.Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of adisability benefit. Members eligible to retire, and who have attained the normal retirement age determined by theirservice retirement benefit formula, will receive the same dollar amount for disability retirement as that payable forservice retirement. For members who have earned service with multiple CaIPERS employers, the benefit attributed toeach employer is the total disability allowance multiplied by the ratio of service with a particular employer to the totalCaIPERS service. .

Industrial (Job Related) Disability RetirementAll safety members have this benefit. For miscellaneous members, employers have the option of providing thisbenefit. An employer may choose to provide the Increased benefit option or the Improved benefit option.EligibilityAn employee is eligible for Industrial Disability Retirement if he or she becomes disabled while working, wheredisabled means the member is unable to perform the duties of the job because of a work-related illness or injurywhich is expected to be permanent or to last indefinitely. A CaIPERS member who has left active employment withinthis group is not eligible for this benefit, except to the extent described below.Standard BenefitThe standard Industrial Disability Retirement benef it is a monthly allowance equal to 50% of final compensation.

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APPENDIX B

The increased Industrial Disability Retirement benefitis a monthly allowance equal to 75%of final compensation fortotal disability.Improved Benefit (50% to 90 % of Final Compensation)The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman's CompensationAppeals Board permanent disability rate percentage (i f 50% or greater, with a maximum of 90%) times the finalcompensation.For a CaIPERS member not actively employed in this group who became disabled while employed by some otherCaIPERS employer, the benefrt: is a return of accumulated member contributions with respect to employment in thisgroup. With the standard or increased benefit, a member mayalso choose to receive the annuitization of theaccumulated member contributions.I f a member is eligible for Service Retirement and if the Service Retirement benefit is more than the IndustrialDisability Retirement benefit, the member may choose to receive the larger benefit.

Post-Retirement Death BenefitStandard Lump Sum PaymentUpon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's deSignatedsurvivor(s), or to the retiree's estate.Improved Lump Sum PaymentEmployers have the option of providing an improved lump sum death benefit of $600, $2,000, $3,000, $4,000 or$5,000.

Form of Payment for Retirement AllowanceStandard Form of PaymentGenerally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive.The retiree may choose to provide for a portion of his or her allowance to be paid to any designated benefiCiary afterthe retiree's death. CaIPERS provides for a variety of s!Jch benefit options, which the retiree pays for by taking areduction in his or her retirement allowance. Such reduction takes into account the amount to be provided to thebenefidary and the probable duration of payments (based on the ages of the member and benefidary) madesubsequent to the member's death.Improved Form of Payment (Post Retirement Survivor Allowance)Employers have the option to contract for the post retirement survivor allowance.For retirement allowances with respect to service subject to the modified formula, 25% of the retirement allowancewill automatically be continued to certain statutory beneficiaries upon the deathof the retiree, without a reduction inthe retiree's allowance. For retirement allowances with respect to service subjectto the full or supplemental formula,50% of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the deathofthe retiree, without a reduction in the retiree's allowance. This additional benefit is often referred to as postretirement survivor allowance (PRSA) or simply as survivor continuance.In other words, 25% or 50% of the allowance, the continuance portion, is paidto the retiree for as long as he or sheis alive, and that same amount is continued to the retiree's spouse (or if no eligible spouse, to unmarried childrenuntil they attain age 18; or, if no eligible children, to a qualifying dependent parent) fo r the restof his or her lifetime.This benefit will not be discontinued in the event the spouse remarries.

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The remaining 75% or 50% of the retirement allow

encinitas city misc pension

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